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CPM is calculated as: $0.00625x1000 (meaning per thousand impressions)=$6.25; Note: Notice how the CPM is $6.25 and not $0.00625, this is because we are looking at cost per thousand. In online advertising, if a website sells banner ads for a $20 CPM, that means it costs $20 to show the banner on 1000 page views.
Cost per impression, along with pay-per-click (PPC) and cost per order, is used to assess the cost-effectiveness and profitability of online advertising. [1] Cost per impression is the closest online advertising strategy to those offered in other media such as television, radio or print, which sell advertising based on estimated viewership, listenership, or readership.
The most common metric is CPM. It stands for 'Cost per thousand'(the M is the Roman numeral for 1,000) [ 4 ] and it is commonly used metrics to measure page views divided by the thousands, that is, cost per 1000 views, used for the ad rates and thus, the less CPM is, the better deal it offers to advertisers. [ 5 ]
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SOURCE: Integrated Postsecondary Education Data System, College of William and Mary (2014, 2013, 2012, 2011, 2010). Read our methodology here. HuffPost and The Chronicle examined 201 public D-I schools from 2010-2014. Schools are ranked based on the percentage of their athletic budget that comes from subsidies.
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